The Tax-planning Of Acommercial Bank After The Reform Of Replacing BT With VAT Of Financial Industry

Since May 1,2016,the financial system in China began to implement a comprehensive change of replacing business tax with value-added tax.On one hand,after the reform,the financial services industry take anunified application of 6%VAT rate,and the actual comparable tax rate is 5.66%,which has increased compared with the previous 5%of the business tax.On the othe hand,the loan interest expenses of loan business,the main source of bank profits,can not be used for the deduction of input tax,resulting in that loan interest income should be taxed in full.At the same time,human source cost accounts for a high proportion of total cost but is not deductible,and the deposit insurance,banking supervision fees and hospitality which account for high proportion of operating expenses can not be deducted.In addition,with the development of internet finance,the market share of commercial banks has been gradually squeezed,and the market competition pressure is getting bigger and bigger.Against this backdrop,commercial banks must change the development strategy to compete in the fierce market competition,and taking the tax planning into the enterprise management to reduct tax burden and operation costs effectivelyis becoming an important strategy for commercial banks.Tax planning effectively reduces the cost of enterprise as well as in line with national policy guidance,realizing the win-win situation between the government and the corporate sector.The literature on the tax planning of commercial banks is mainly focused on the original business tax system,and there is little research on the tax planning strategy of commercial banks after the reform.Therefore,this paper discusses the tax planning strategy of commercial banks under the added-value tax system.Moreover,the difference between business tax system and the value-added tax system is in the field of turnover tax,and has little effect on income tax and other tax planning strategy.Thus,we focus on turnover tax and ignore other taxes.We adopt the method of combining theoretical analysis and case analysis.Firstly,this paper expounds the basic theory of tax planning.Next,we analyze the policy of the tax planning of commercial banks in theory.After that,we combine the theory with the case of A commercial bank to analyze the tax-planning strategy of commercial banks under the background of the reform of replacing business tax with value-added tax,and finally we give some suggestions.This paper makes a detailed discussion on the tax planning and tax burden of the A commercial bank after the reform based on the comparative analysis of the business tax system and the value-added tax system,and gives some specific suggestions for the tax plan strategy of A commercial bank.Such as,(1)adjust the interest income structure and expand the scale of interest income levied on value-added tax;(2)improve the ability to innovate and increase the intermediary business;(3)make full use of non-performing loans to offset the current taxable value;(4)take the business and management fees into classification management,improve the invoice management system,consider input tax deductible management,strengthen the selection of suppliers and service providers,and choose the procurement methods reasonally;(5)separate the taxable items from the non-taxable items for declaration and computition to make the deductible input taxto reach the maximum possible deduction;(6)adjust the real estate purchase planaccording to their own circumstancesin order to enjoy the real estate input tax deduction policy.The contribution of this paper is that the current research and literature on the tax planning of China's banking industry is not enouth and not comprehensive.This paper argues that the tax planning strategy of A commercial bank could be applied to the same type and size commercial banks after the tax planning for providing a certain direction and reference value.